UTU News Digest - Wednesday, December 8, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Wednesday, December 8, 1999

VIRGINIA: Norfolk Southern opens Bison Yard in Buffalo

NORFOLK -- Norfolk Southern Corporation (NYSE: NSC) announced yesterday in a press release that its Bison Yard in Buffalo is operational.

The $12 million project involved installation of a 10-track switching facility on the site of a former Conrail rail yard, adjacent to Norfolk Southern's automotive, intermodal and bulk distribution facilities. Because of the need to improve rail service in western New York and address concerns raised by the Surface Transportation Board, Norfolk Southern expedited construction, completing the project in less than 90 days. The facility began handling freight shipments December 1.

"The new Bison Yard enables Norfolk Southern to operate more efficiently within the Buffalo terminal by shifting some traffic away from our Buffalo Junction Yard, which had exceeded its functional capacity, leading to service problems for our customers," explained Jon L. Manetta, Norfolk Southern senior vice president Operations. "However, there are still infrastructure improvements we need to make in Buffalo - particularly the drawbridge (CP Draw) over the Buffalo River - to meet our goal of delivering rail service in western New York."

Norfolk Southern swiftly pursued infrastructure improvements in Buffalo because of the tremendous volume of freight that came to Norfolk Southern to and from western New York and Canada as a result of the Conrail transaction, effective June 1, 1999. Since then, shipments have more than doubled on Norfolk Southern in Buffalo. To effectively handle this increase, Norfolk Southern:

Subleased and expanded the Buffalo & Pittsburgh's Buffalo Creek yard. This $3 million project involved upgrading more than 10 miles of tracks within the yard, installing 3.5 miles of new rail and replacing almost 13,500 rail ties.

Built Bison Yard.

Is considering alternatives for improvements to CP Draw.

ILLINOIS: Commuter line possible on old EJ&E railroad tracks

CHICAGO -- Another step was taken Monday on what already has been a long trek toward a possible commuter line on the old Elgin, Joliet & Eastern Railroad tracks that ring Chicago's most distant suburbs.

The Regional Transportation Authority has given the initial go-ahead for a market study to be done on the proposed commuter line, making it a shoo-in for funding under the agency's Regional Technical Assistance Program (RTAP).

A two-year, preliminary study concluded in April that passenger service is physically possible on the old freight-line tracks, which run from Waukegan to Elgin, Aurora, Joliet and Gary, Ind.

No dollar amount has yet been set for the market research, which likely will involve surveying potential users of the system to determine their willingness to transfer to such a route from any of the Metra routes from Chicago, said Shane Winn, transportation specialist for the Northwest Municipal Conference.

The conference and a number of communities along the EJ&E's route have been lobbying for several years to open up the tracks for commuter use.

The market study was one of about a dozen that survived the final cut, RTA spokesman David Loveday said.

The RTA board must vote to approve the funding at its February meeting, but the intent to proceed with the project was announced Monday by RTA representatives at a committee meeting of the Chicago Area Transportation Study's Council of Mayors.

The market study is one of several, totaling about $1.5 million that must precede any decision on whether to proceed with commuter service on the old rail line.

CALIFORNIA: Unblinking eye spies on rail gate crashers

LOS ANGELES -- For those stupid enough to believe a vehicle of thin metal is a match for a rushing 50,000-ton train at a railroad crossing, fair warning: It's going to cost a lot more money, beginning Jan. 1, for those caught playing such an insane game of chicken, says columnist Jerry Hicks.

The fine will more than double for crossing the tracks once a signal light is on and the gate arms are coming down--from $104 to $271.

And rail officials plan to push harder to catch more people.

Railroad safety has been much in the news lately. The six Compton deaths at a rail crossing last week and the Nov. 18 near-disastrous Fullerton crash of two trains are only two of numerous recent local incidents. We've had six deaths in Orange County this year.

"Safety has to be our No. 1 concern," said Sarah Catz, a member of the Orange County Transportation Authority board and the Metrolink rail board.

One step: Catz is asking the Metrolink board for a six-month extension of the experimental surveillance cameras at Santa Ana's Chestnut Street railroad track intersection.

In a pilot project, from April through October, the two cameras at Chestnut caught hundreds of motorists illegally trying to beat a train. Some raced across the tracks after the warning flashers and ringing bells had gone off but before the gate arms could be lowered. Others simply made an "S" move with their vehicles to go around the lowered gate arms to cross to the other side.

Pictures of violators, and their vehicle's license plate, are turned over to the Orange County sheriff's office. The fine comes in the mail.

Chestnut was the only Orange County crossing under surveillance by Metrolink. Catz wants its cameras to go back up for another six months.

"The results were just too inconclusive," Catz said. "We'd like to take another shot at it."

Warning signs in both directions at the Chestnut crossing told motorists they would be on camera. Metrolink wanted to see if the presence of the cameras was enough to deter motorists from trying it. But Metrolink officials say the data they've gathered just aren't enough to tell if the cameras are making a difference.

The cameras did show that at least someone, every day, illegally tried to beat the flashers, bells and gate arms.

"We can see a lot of people slow down just seeing the warning sign about the cameras," said Oscar Mayn, who works at a nearby machine shop. "But we also see some people race like crazy to make it across when a train is coming."

Why such idiocy? Catz theorizes some people probably do it because they've done it before and succeeded.

If another six months show the cameras getting results, Catz said, she will push for more cameras spread along railroad crossings throughout the county.

Workers at Evans Roofing Co., the business closest to the Chestnut Street tracks, point out another serious problem: Westbound traffic seriously backs up between the tracks and the stop sign at Standard Avenue, a block away. The Evans workers say that at 5 p.m., when traffic is at its worst, they've seen vehicles backed up to the point some are stuck right in the middle of the railroad crossing. Then when a train is coming, they have to scramble to get off the tracks.

The Evans workers' suggestion is a good one: A huge "Wait Here" sign should be posted on the west side of the tracks, to point out to motorists the potential problem.

FLORIDA: CSXT announces 18 new projects, helps create 700 new jobs in October

JACKSONVILLE -- CSX Transportation Inc. (CSXT), one of America's leading railroads, announced in a press release that it has continued its industrial development activity pace in October, following a record-breaking September in which the company reported the most productive month for industrial development projects in 10 years.

During October, CSXT helped facilitate industrial development and expansion that attracted over $170 million in investment capital and helped create almost 700 new jobs through 18 projects in 10 states along its rail system. CSXT's new customers will generate more than 5,000 carloads annually for rail transport by CSXT.

"We are proud to continue our 1999 industrial development productivity record and success in growing new business in the month of October," said David Hemphill, CSXT assistant vice president of industrial and economic development. "We stand committed to partnering with state and county economic development officials spur economic development in communities along our network."

Working closely with local economic development officials, CSXT cited particular achievement in October in attracting companies from the plastics, metals and agriculture/food products industries.

For example, CSXT assisted Buckeye Technologies, Inc., a manufacturer of airlaid nonwoven products, in locating a site and providing a preliminary rail design for the company's new $100 million facility machine in Gaston County, N.C. This new facility will hold the world's largest airlaid nonwovens machine. Buckeye Technologies will employ 220 people when the facility is operational in the third quarter of 2001. The plant will receive 800 carloads of pulp per year transported by CSXT.

"We are pleased with the support Buckeye has received from CSX Transportation, Gaston County communities, and the State of North Carolina," said Robert Cannon, chairman and CEO of Buckeye Technologies. "Buckeye distributes its specialty cellulose and absorbent products worldwide, which makes reliable and cost-effective transportation services very important to our business."

In addition to location efforts, CSXT began transportation for several companies that became operational in October, generating a total of 15,000 carloads annually for CSXT. One new customer, Chaparral Steel began receiving traffic at its new $350 million facility near Petersburg, Va., a project that was initiated as a site search three years ago. CSXT will transport more than 5,000 carloads annually for Chaparral Steel when the mill reaches full capacity.

Through its industrial development program, CSXT has played a key role during the last five years in helping nearly 550 companies locate and expand along its rail lines. Since 1994, CSXT has supported a total of approximately $10 billion in industrial development projects, creating more than 28,000 jobs. While generating new jobs and investment dollars in eastern and Midwestern states, these projects provide CSXT with new customers and revenue.

CANADA: Canadian National's service plan cuts transit times, boosts on-time performance

MONTREAL -- Canadian National has significantly reduced transit times and improved on-time delivery of carload freight since implementing a service plan a year ago that transformed CN into a scheduled railroad, the railroad said in a press release.

"Timely, consistent freight transportation is the Holy Grail of the railroad shipper," said E. Hunter Harrison, CN's executive vice-president and chief operating officer. "Our job is to deliver to them, and we're doing that with our ground-breaking service plan."

CN's conveyor-belt-like schedule of train services fully implemented in the fall of 1998 -- has:

Achieved 81 per cent on-time performance for carload traffic at a dock-to-dock level of measure, with a 96 per cent on-time performance for deliveries within 24 hours of the prescribed time. CN is making steady progress toward a 90 per cent on-time performance -- with no buffer -- by year end

Reduced the time freight cars spend in key terminals by 18 per cent to 21 hours

Reduced overall transit times for carload traffic by 24 hours

Increased asset utilization significantly. Since early 1998, CN's active locomotive fleet has been effectively reduced by 33 per cent to 1,320 units, while its car fleet has been cut by 17 per cent to 68,400 cars

Increased gross tons miles per available horsepower -- a measure of how efficiently a railroad utilizes its locomotive fleet -- by 33 per cent

Increased car miles per car day -- a measure of the velocity of cars on the network -- by 19 per cent to 138.

Harrison said the plan's scheduled freight train products have clear benefits for shippers -- and CN. Shippers gain greater control over production and inventory costs, and car owners and lessors experience greater productivity and lower costs. At the same time CN enjoys reduced costs, better use of assets and greater flexibility in capital spending.

"CN believes the service plan's cost/quality improvements will position the railroad to capture new business from existing and prospective customers and, over time, improve yields," Harrison said. "The service plan is a powerful management tool and a competitive advantage in the freight transportation marketplace."

The strength of the service plan is its focus on dock-to-dock transit times for individual car shipments, not terminal-to-terminal transit times for trains.

In designing the plan from the railhead up, CN took a hard look at reducing "dwell time" -- the amount of time freight cars sit idle -- in its classification yards. Consistent standards for connections and maximum throughput were established for each terminal. These were then used to anchor main-line train arrival and departure times. By bringing the connection time for major traffic flows as close as possible to the design standard, transit times, car cycles and yard congestion have been reduced. Dwell times at intermediate yards have also been cut by minimizing the number of times cars are classified.

All of this permits specific transit time commitments trip plans, measured in hours, not days -- for carload and intermodal shipments based on delivery capability and backed by those responsible for their day-to-day execution.

To support compliance with the service plan, CN developed a "product catalogue" for its sales and marketing group that defines the railroad's service capabilities for carload and intermodal freight. The catalogue also provides a means for monitoring CN's dock-to-dock transit performance, to drive real-time decision making in the field and to measure how CN's performance stacks up against its customer trip plan commitments.

Harrison said: "A key strength of the service plan is its focus on managing CN as an integrated network. Managers are continually examining opportunities to combine shipments from different business units, such as intermodal/auto-motive and merchandise. The creation of multi-purpose trains allows CN to fill idle capacity and to improve the ratio of tons of freight moved per locomotive."

Keeping track of the progress of shipments is a key aspect of the service plan. Using CN's Service Reliability Strategy (SRS) information system, CN monitors and controls customer shipments and provides timely, accurate information on the status of shipments to meet precise door-to-door scheduling commitments. CN now provides customers with the number of hours required to move a shipment from one point to another and the on-time performance level on a percentage basis on such shipments to date.

MASSACHUSETTS: Agreement allows railroad bridge repairs to begin

CONCORD -- Major repairs to the vertical lift railroad bridge over the Cape Cod Canal may now proceed under the terms of the second and final agreement signed recently by the government and the railroad which operates the span, the Army Corps of Engineers announced.

"The Massachusetts Executive Office of Transportation and Construction, Bay Colony Railroad Corporation and the U.S. Army Corps of Engineers have agreed to allow major rehabilitation of the railroad bridge to be accomplished by the federal government," said Col. Brian E. Osterdorf, head of the Army Engineers in New England. "Execution of this agreement is directly attributable to the intervention of Congressman William A. Delahunt and the cooperation of Massachusetts Secretary of Transportation Kevin J. Sullivan and the railroad."

The actual agreement takes the form of a modification to the 1935 contract between the operating railroad and the United States, which assigned operation and maintenance responsibilities to the railroad.

Earlier this year, Delahunt won congressional approval for authorizing the Corps of Engineers to fund the costs of providing alternate transportation while the bridge is being repaired. The lack of such authority was the key stumbling block between the Corps, the state and the railroad over the nature and schedule of bridge repairs.

The agreement announced today means that all parties are in accord on key aspects of the repair. The work, which has been delayed for several years, can now move forward.

"This landmark that sits at the gateway of Cape Cod and greets millions of visitors will finally get a long overdue facelift come summer," Delahunt said. "This agreement gives the Corps the 'go-ahead' to proceed, something it has sought for many years."

"This is a very positive development that has been years in the waiting and I'm pleased to help this project move forward," said State Transportation Secretary Kevin J. Sullivan. "By rehabilitating the Cape Cod Canal [railroad] Bridge, we will preserve this important route well into the future."

The work is the first major rehabilitation of the bridge since it was constructed over 60 years ago and will be undertaken in two phases. Phase I, which was advertised for bids on November 18, 1999, involves repair and painting of the steel structure, as well as repairs to ancillary facilities. During this phase, which is expected to cost between $5 and $10 million and take about 1-1/2 years to complete, the bridge would be closed for no more than eight hours at a time. Alternate hauling will not be needed during these short duration shutdowns. The agreement required to accomplish this phase was signed in 1996. Phase I bids are scheduled to be opened on December 30, 1999.

Phase II calls for replacement of cables and bearings and the electrical system, as well as other work that requires the bridge to remain raised for more than eight hours. Most of this work will be accomplished during one extended shutdown of up to 90 days. Phase II will cost an estimated $13 million and is slated to begin in 2001.

The vertical lift railroad bridge was constructed between 1933 and 1935 when the Canal was widened and deepened. At the time it was constructed, it was the longest vertical lift bridge in the world and continues to span the widest sea-level canal in the world. The railroad bridge and the Bourne and Sagamore highway bridges were built with WPA funds during the depression and replaced drawbridges built during the original canal construction in the early part of this century.

During both phases of work, the Cape Cod Canal will remain fully open to vessel traffic.

ROMANIA: Rail workers' strike affects industries

BUCHAREST -- Romanian rail workers, on strike for the third day, resumed talks with management on pay demands as the halt in rail traffic affected industries across the country, a trade union leader said on Wednesday and Reuters reported.

"I don't expect too much from today's talks. We are demanding a 70 percent wage increase, while the transport ministry is willing to agree to only 20 percent,'' Gheorghe Sultana told Reuters.

"After all, neither our 70 percent nor their 20 is nailed down. Both can be negotiated,'' he said.

The stoppage has affected big plants across Romania, disrupting supplies of raw materials and shipments of goods, Bucharest state radio said.

Under the law, the rail sector must operate with 30 percent of its capacity if workers go on strike.

The state radio said some 260 rail wagons loaded with finished products were idle at the big Sidex steel mill in the Danube town of Galati. Some 5,000 tonnes of steel remained unprocessed due to the strike, it said.

A Sidex manager said the plant would be forced to cut output if the strike continued.

The radio said traffic in the main Black Sea port of Constanta had been also affected by the stoppage. It said the number of trains entering the port was declining, with only 11 trains arriving in Constanta on Wednesday, this compared to a daily average of 22 previously.

More delays in shipping goods to Constanta could raise prospects for port authorities to pay demurrages to four vessels already under loading operations, it said.

"We know that our strike could anger many. But we have no other choice. However, we are open to talks,'' Sultana said.

On Monday, Transport Minister Traian Basescu asked the state-run Tarom airline and several bus companies to ferry passengers stranded in rail stations to their destinations. The move was attacked by the strikers who said it was at the expense of the state budget.

Basescu also rejected the pay demands as groundless and said a 70 percent wage increase would boost rail fares by 40 percent.

ENGLAND: Stagecoach profits drive up shares

LONDON -- Stagecoach Holdings Plc on Wednesday pumped some steam into Britain's depressed transport sector after posting strong first half results and assuring investors that its U.S. business was firmly on track, Reuters reported.

The company said pre-tax, pre-exceptional profits rose 34 percent to 130.2 million pounds ($211.5 million) -- well above analysts' forecasts of around 115 million -- on a 52 percent increase in group turnover. It proposed an interim dividend of 1.2 pence per share.

Executives said the results reflected strong growth in the group's core bus and rail operations and a three-month contribution from the recently acquired U.S. bus company Coach USA. The only area which underperformed was Stagecoach's Swedish bus operation, which the company sold in October.

"The profile of our earnings has been completely transformed over the last two years with strong organic growth in every area,'' chairman Brian Souter said in a statement. He added that the second half of the year had started satisfactorily.

Stagecoach shares -- which have underperformed the market by 42 percent this year -- put on more than five percent in the morning and then slightly retreated to trade 4.2 percent, or 6-3/4 pence, up at 168-1/2p by 1410 GMT.

"The numbers are off the Richter scale as far as forecasts...Most important is that it has shown strong organic growth across all of its businesses,'' said Alastair Gunn, transport analyst at Credit Lyonnais.

The market has been nervous in recent weeks about whether Stagecoach has developed a clear strategy in the potentially lucrative U.S. bus market, which it entered in June with the $1.24 billion purchase of Coach, a leading provider of charter, tour and sightseeing services in North America.

Stagecoach, which already had businesses in the UK, China and New Zealand, was hailed for gaining access to the $40 billion U.S. bus market, only 30 percent of which is in private hands.

But a disappointing book-building exercise last month to raise 400 million pounds to partly finance the acquisition left a bad aftertaste. The shares dropped from a high of 240 pence in mid-June to low of 141p in mid-November and the market has been looking for clear signs by management.

Stagecoach tried to deliver.

Chief executive Mike Kinski said in an interview that since the Coach purchase the company had made 11 further acquisitions in the U.S. -- generating annual revenues of some $43.4 million -- and was adding another 953 vehicles into the Coach portfolio.

Kinski said Stagecoach would now look for more bolt-on acquisitions and other growth opportunities from outsourcing and privatization’s -- and that the business was likely to double to reach $1.6 billion in turnover in three years.

"The message is that we are growing the Coach business through acquisitions, through organic growth and by capitalizing on industry growth,'' he said.

While North America was a clear growth market, the company was also open to acquisitions in its other overseas operations and had some 400 million pounds to spend, Kinski added.

Besides several bus companies in Britain, Stagecoach has interests in Prestwick airport in Scotland, Virgin Rail and Chinese toll roads and New Zealand ferries.

In a statement, Stagecoach said it expected Britain's rail authority to announce the start of a franchise extension process for South West trains in the first quarter of next year.

Uncertainty over the renegotiation of the seven-year franchise, which ends in 2002, has been another factor weighing on Stagecoach stock.

Franchise negotiations are likely to be tougher for all train operators in the next months after 31 people were killed in a train crash in London in October. The disaster raised government and regulator demands that train operators spend more on safety.